Jakarta, Indonesia – On September 16, 2025, the Indonesian government announced the suspension of social welfare benefits for approximately 300,000 individuals linked to online gambling activities, following a broad audit of 12 million beneficiaries conducted by the Financial Transaction Reports and Analysis Center (PPATK). The investigation identified around 2 million recipients as ineligible due to anomalies including gambling-related financial behavior, with hotspots in West Java, Central Java, and East Java, underscoring the extent of misuse across key regions.
Social Affairs Minister Saifullah Yusuf reaffirmed the administration’s commitment to preserving the integrity of social assistance programs. He stated, “Beneficiaries confirmed to be involved in online gambling will have their benefits terminated immediately. More than 300,000 individuals will no longer receive assistance to ensure rightful allocation of funds to deserving recipients.”
These enforcement actions are based on Presidential Instruction No. 4 of 2025, which mandates rigorous data synchronization and verification processes led by the Central Bureau of Statistics. This legal framework empowers authorities to apply graduated sanctions, ranging from formal warnings to permanent removal, for welfare abuse linked to illegal gambling. The regulation seeks to safeguard social aid from exploitation and maintain its focus on vulnerable populations.
Economically, redirecting welfare funds away from ineligible individuals is expected to improve the sustainability and efficiency of Indonesia’s social protection system. Meanwhile, the government continues to combat the underground online gambling market, estimated to have processed transactions totaling approximately Rp976.8 trillion since 2017. Strengthening oversight of both social aid disbursement and gambling-related financial flows aims to enhance transparency and curb fiscal leakage.
As Jakarta undertakes this significant reform, the government’s ability to restore public trust in social welfare hinges on the sustained enforcement of these measures and potential future reforms addressing deeper systemic vulnerabilities.
